Abstract: The fine wool of Ordos is mainly produced in Wushen Banner of Ordos of Inner Mongolia and its quality is comparable to that of the Australian wool. In recent years, with the strong support of governments at all levels, the local farmers have explored an effective way of the production and management of fine wool. The price of fine wool has increased year by year, and the local farmers and herdsmen achieve steady increase in income. To promote the supply-side structural reform on local fine wool production, we recommend that the variety improvement of Ordos fine wool sheep should be enhanced, the direct selling of fine wool should be well organized, the modern management technology in fine wool production should be extended, the fair inspection system of fine wool should be established and implemented, and the production and management mode should be optimized.